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    • dangermouse1974
    • By dangermouse1974 22nd Nov 17, 9:03 AM
    • 8 Posts
    • 0 Thanks
    dangermouse1974
    • #2
    • 22nd Nov 17, 9:03 AM
    im looking for advice please
    • #2
    • 22nd Nov 17, 9:03 AM
    ok so long story short my mum is on E.S.A she had a mortgage on her house . paid interest only . she was forced to sell house as morgage time up. she made various improvements to house i.e new kitchen bathroom which personally cost over 10k whilst she has the house . she has been told she will receive around 16k after all fees taxes have been paid for sale of house . she isnt a pensioner yet she is 64 years old . she is homeless at the moment although she is staying with family . she has been notified by esa that she will lose her entitlement to benefit??? and been told by esa she cannot gift money to her kids / grandkids as this is disposing money for benefit purposes or something like it .so she has no other savings or money in isa etc and no provision for funeral expenses . so in a nutshell she has paid a mortgage for 15 years and improved the house and the only people that will benefit from it is the mortgage company estate agent and the government is this right. please can you clarify any steps she can take to retain her benefit that she is entitled to as she is disabled .whilst retaining at least some of the money for retirement thanks in advance for your help
    Last edited by dangermouse1974; 22-11-2017 at 9:07 AM. Reason: spelling
    • IAmWales
    • By IAmWales 22nd Nov 17, 10:13 AM
    • 1,860 Posts
    • 3,914 Thanks
    IAmWales
    • #3
    • 22nd Nov 17, 10:13 AM
    • #3
    • 22nd Nov 17, 10:13 AM
    She is only entitled to benefit for as long as she meets the criteria.

    Is she on income based ESA? If so her entitlement to payments will cease whilst she has 16K, but once her capital reduces below that level she will receive a reduced payment. Once she has below 6K she will receive full payment again.

    She cannot gift money in order to reduce her capital. She can buy a funeral plan, that would be deemed reasonable in the circumstances.

    She should have taken advice before selling the property. There are lenders that would have allowed her to continue on an interest only basis into retirement.

    If she is on contributions based benefit her entitlement will continue.
    • Ames
    • By Ames 22nd Nov 17, 12:30 PM
    • 17,139 Posts
    • 30,123 Thanks
    Ames
    • #4
    • 22nd Nov 17, 12:30 PM
    • #4
    • 22nd Nov 17, 12:30 PM
    If she has no other savings it won't be long before her savings drop below 16k and she's eligible for benefits again. However, if she lives in a full Universal Credit area she'll have to claim that instead of ESA, and it's usually less money.

    Some spending would be allowed and not considered deprivation of capital. It depends on circumstances though.
    Unless I say otherwise 'you' means the general you not you specifically.
    • dangermouse1974
    • By dangermouse1974 22nd Nov 17, 3:42 PM
    • 8 Posts
    • 0 Thanks
    dangermouse1974
    • #5
    • 22nd Nov 17, 3:42 PM
    • #5
    • 22nd Nov 17, 3:42 PM
    She is only entitled to benefit for as long as she meets the criteria.

    Is she on income based ESA? If so her entitlement to payments will cease whilst she has 16K, but once her capital reduces below that level she will receive a reduced payment. Once she has below 6K she will receive full payment again.

    She cannot gift money in order to reduce her capital. She can buy a funeral plan, that would be deemed reasonable in the circumstances.

    She should have taken advice before selling the property. There are lenders that would have allowed her to continue on an interest only basis into retirement.

    If she is on contributions based benefit her entitlement will continue.
    Originally posted by IAmWales
    quick question can she not pay money into some sort of plan for her and her partners retirement or is this considered as disposing of asetts? thanks
    • Ames
    • By Ames 22nd Nov 17, 3:58 PM
    • 17,139 Posts
    • 30,123 Thanks
    Ames
    • #6
    • 22nd Nov 17, 3:58 PM
    • #6
    • 22nd Nov 17, 3:58 PM
    quick question can she not pay money into some sort of plan for her and her partners retirement or is this considered as disposing of asetts? thanks
    Originally posted by dangermouse1974
    There aren't any hard and fast rules, it comes down to what a decision maker thinks on the day.

    My view is that at 64, suddenly starting to make pension arrangements would be seen as deprivation.

    You didn't mention before that she had a partner. Does he/she work or have income? Do they live together as a couple?

    You'd be better off posting on the benefits board, giving full details of her circumstances. There could be other options depending on their ages (I'm thinking of Pension Credit, but I'm not sure about all the rules).

    This thread is a particularly bad place to post because of it being a sticky, people don't really read replies on them.
    Unless I say otherwise 'you' means the general you not you specifically.
    • Lunar tick
    • By Lunar tick 25th Nov 17, 2:39 AM
    • 2 Posts
    • 0 Thanks
    Lunar tick
    • #7
    • 25th Nov 17, 2:39 AM
    • #7
    • 25th Nov 17, 2:39 AM
    I think it's bang out of order! But yes as sad as it is if you have certain amount of savings not sure how much they won't give you anything not like you haven't worked most of your life and they should thank you for that and your taxes they are out of order!
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